Authority &

Responsibilty
Delegation and
its Elements
Accountabilty
Decentralisation
AUTHORITY
According to Henry Fayol, Authority is
the right to give orders and power to exact
obedience.
According to Weihrich and Koontz,
Authority in organization is the right in a
position( and, through it, the right of the
person occupying the position) to exercise
discretion in making decisions affecting
others.
 Characteristics
of authority
1. A Right:
2. Positional Right:
3. Formal:
4. Flow of Authority: flows from the Top to
the Bottom of the managerial hierarchy.
5. Forms of Authority:
(a) Decision making
(b) Issuing orders
(c) Taking actions
(d) Performing Duties
(e) Mobilsing and Utilizing resources
6. Relationship: Establishes Right duty
relationship between Superior and
Subordinate.
7. Guide and Influence:
8. Goal Achievement:
9. Limited: The limit on authority is specified
by the duties, responsibilities, rules ,
regulations, policies, procedures, budgets etc.
10. Objective: Authority in itself is objective by
nature but its exercise may be
subjective(influenced by many factors).
11. Abuse or Misuse:
 Power
Power is the ability of a person to
influence the behavior of others or the
capacity to affect a situation.
Whereas, Authority is the
formal right to command subordinates
and ensure confirmity.
 Distinction between
Authority Power
1. It is the formal right 1. It is the ability to
vested in managerial influence others. It is
position to decide. neither formal nor
2. It is impersonal and informal
objective. 2. It is personal and
3. It vests only in subjective.
organizational 3. It is all pervasive.
positions. 4. It can flow in any
4. It flows from top to direction from top to
bottom in managerial bottom or bottom to
hierarchy top.
According to Haimann , Responsibility is
the obligation of a subordinate to perform
the duty as required by his superior.

In words of McFarland, Responsibilty

is the duties and activities assigned to a
position or an executive.

Thus, Responsibility is an obligation of a

person to perform tasks, functions and
activities assigned to him.
ACCOUNTABLITY
According to Mondy etal, Accountability
is any means of ensuring that the person
who is supposed to do a task actually
performs it and do so correctly.

In simple words, Accountability is the

obligation of a person to report to his
Superior for the actions and decisions
taken or for the results achieved by him.
Thus , accountability arises when a
person assumes responsibilities.
THIS SHOULD NOT BE
DONE ELSE YOU WILL BE
KICK OUT FROM THE
SYSTEM/ORGANISATION.
 DIFFERNCES BETWEEN
RESPONSIBILITY ACCOUNTABILTY
Responsibility is a Accountability is the
personal duty felt by a demand of a manager on
subordinate. his subordinates.
Responsibility is the It is the duty of a person
duties and activities to give accounts for the
assigned to a position or acts done, decisions
to an executives. made or results achieved
by him to his superior.
DECENTRALISATION
 DECENTRALISATION
According to Henri Fayol, Everything
that goes to increase the importance of
the subordinates role is decentralization.
In simple words , Decentralization of
authority refers to the extent to which
decision-making authority is widely
dispersed within the organization. Here ,
top management retains authority to
make certain important decisions like
setting obj., strategic planning, policy
formulation etc.
 CHARACTERISTICS
1.Dispersal (freedom at their own) of
decision making.

2.Operating and routine decisions is

delegated at the points where actions
take place.

3.Power relating to functional areas are

delegated to middle and lower-level
managers.
 Contd.
4. Middle and Lower levels have discretion in
specific operational areas.

5. Decentralization is more than mere

delegation of authority.

6. It is impossible to achieve absolute

decentralization of authority.
 Advantages:
1. Reduces burden on top Mgt. :
2. Quick decisions:
3. Better Decisions:
why because decisions are made by the
persons closest to situation.
4. Better communication:
5. Training and Development:
6. Democratic atmosphere:
7. Improves Motivation and Morale
 Disadvantages :
1. Loss of control :
2. Difficulty in coordination :
It may crate prob. in developing coordination
among the different dept. of the organization.
3. Lack of uniformity :
4. High cost :
5. Duplication of work :
6. Competition among departments :
7. Imbalance
DELEGATION
 Contd.
In the word of Haimmann, Delegation of
authority merely means the granting of authority
subordinates to operate within the prescribed
limits.
In simple term, Delegation means dispersing or
assigning authority from one manager to another.
Or we can say sharing authority with another.
Thus, delegation is the process by which a
manager assigns his authority to his
subordinates to perform certain tasks or activities
assigned to them.
 Characteristics :
1. Process of assigning authority.
2. Shifting decision making authority.
3. Creates link.
4. Authorizes subordinates.
5. Creates responsibilities.
6. Delegation of authority not of
responsibility.
7. Only to positions.
8. Express or implied
 Significance :
1.Key to managing.
2.Basis for organizing process
3.Quicker decision and faster decision.
4.Better decisions.
5.Promotes specialization.
6.Relieves managers from operative
functions.
7.Motivates subordinates.
8.Better attitude and morale of employess
9.Training and development of
subordinates.
Delegation process:
DETERMINING THE RESULTS EXPECTED
FROM A POSITION

ASSIGNIG TASKS TO THE POSITIONS

DELEGATING AUTHORITY FOR

ACCOMLISHNG THESE TASKS

HOLDING THE PERSON IN THAT POSITION

RESPONSIBLE FOR THE
ACCOMPLISHMENT OF THE TASKS.
 DIFFERENCE BETWEEN
DELEGATION DECENTRALIZAION
It is a process of It is an organizational
assigning authority from a process by which dispersal
superior to his of authority takes place
subordinates. throughout the
It is the process of organization.
devolution of authority. It is the end result of the
Here immediate superior process of delegation.
has control over the While here, top managers
subordinates. have overall control and
It is must for operating control vests
management and key to with the subordinates
organization. It is optional..
 Contd.
DELEGATION DECENTRALIZATION
In this, both the superior Here , superior cannot
and the subordinate can exercise the decentralized
exercise in the same their authority.
authority. while here, subordinates
The superior continues to become liable for their
responsible for the decisions and actions to
decision and actions of the top managers.
his subordinate. It cannot take place
It can take place even without delegation.
without
decentralitionation.